Arab American University

Data Analysis Project

Prepared By:
Duaa Diek
Lina Jardaneh
Ghadeer Khalil

Prepared for:

Dr. Elias Dabeet

A Study on

Income & Expenditures

for Palestinian Families in WB & Gaza

1
 INTRODUCTION

The following project is about Expenditure and Consumption for Palestinian community and the
data have been obtained From Palestinian Central Bureau of Statistics, Expenditure and
Consumption survey 2011.
The screening was done on a random sample of 4317 families distributed on Gaza and WB
during 2011 consisting of all enumeration areas which were enumerated in 2007.

The calculated sample size for the Expenditure and Consumption survey 2011 is about 4,317
households, 2,834 households in West Bank and 1,483 households in Gaza Strip. Sample Size is
about 4,317 households: 2,834 in West Bank and 1,483 in Gaza Strip.

The sample is a stratified cluster systematic random sample with two stages:
First stage: selection of a systematic random sample of 215 enumeration areas.
Second stage: selection of a systematic random sample of 24 households from each
enumeration area selected in the first stage.
In this project we assumed that the data have followed the normal distribution, and the
significance level is 0.05

The major eye catching conclusion of this study is that “the mean of monthly expenditures
rates in General are higher than mean of the monthly income”.
- The average mean of monthly income =(3903) NIS which was higher than average
median (3034) NIS for monthly income rate, and this higher of the means average
because of there is extremes value between lowest and highest income monthly
rate, comparing with the mean of monthly expenditure = (4730) NIS and the mean
of monthly consumptions = (4967) NIS.

2
This may lead us to conclude that the Palestine Community is poor Community, and May there
are other sources for income beside the official source such as other kinds of aids and grants
which didn’t mentioned in this survey.
In addition to other major conclusions which are:-
1- According to angels law the best standard of living is less than 30 % of the
portion of food consumption from the total consumption, Palestinian families
have the best standard of living and may this because of not enough income to
spend on food.
2- Otherwise Palestinian tends to high quality life values, thus they spent about
20% of their income on Clothes & shoes, and they spend on housing even if
income rate was low, and also the mean of cigarettes expenditure is greater
than the mean of education and health expenditure.
3- There is a great discrimination between females and males especially in the
most top and lowest Careers, since male worker portion was 77.777% and
the portion for worker female does not exceed the percentage of 22.222% of
all total workers ratios.
4- As the Community dependent on the aids, the relationship between total
monthly income and aid (r= .168) which mean There is direct weak linear
relationship between them), and the coefficient of determination ( r 2 = 0.028)
which means that 0.028 of the variation in the aid can be explained by total
monthly income.
5- For the problem of poverty in households and low income, there is many cusses
as shown in the fishbone below.
6- Healthcare expenditures have some weak relation to monthly income rate. But
as it seems that no matter what the income rate was, health care has a priority
for sample households. These also show high awareness for health issues
among sample households.
3
 7- 80% of monthly expenditures rate for sample families is caused by:
healthcare, clothes & shoe, Meat, Bread & Grains, Vegetables, and education,
Please See Pareto chart.

DEFINITION
Consumption: It refers to the amount of Cash spent on purchasing goods and services for
living purposes of family which its payments or part of payments were received from an
employer. It includes all goods family consumes during the screening period and monthly
residence rent assumption for owned residencies.

Expenditure: It refers to the amount of Cash spent on purchasing goods and services for
living purposes, including cash expenditure spent as taxes (non-commercial or non-
industrial), gifts, contributions, interests on debts and other non-consumption items which its
payments or part of payments were received from an employer.

Household: refers to one person or group of persons (with or without a family relationship)
who live in the same dwelling unit, who share meals and make joint provisions for food and
other essentials of living.

4
Part one:

1- What is the average monthly income for the Palestinian sample population households?

Statistics
‫اجماليالدخاللشهريلألسرةبالشيكالالسرائيلي‬
N Valid 4308

Missing 5
Median 3043.1667
Sum 16815641.05

We conclude that about50% of the Palestinian family monthly income is equal or below 3034.167 NIS.

2- Is the monthly income rate mean for population household equal to 3034.167 NIS?

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
‫اجمال الدخل الشهري لألسرة بالشيكل‬
4308 3903.3521 3475.60643 52.95327
‫االسرائيلي‬

One-Sample Test
Test Value = 3034.167

95% Confidence Interval

Sig. (2- of the Difference

T Df tailed) Mean Difference Lower Upper

‫اجمال الدخل الشهري لألسرة بالشيكل‬
16.414 4307 .000 869.18515 765.3695 973.0008
‫االسرائيلي‬

- HO:µ= 3034 H1:µ ≠3034

- Test Statistic Value: t = 16.414
- P-value < 0.001
- Decision: Reject H0 if P-value < alpha
- 0.001< 0.05 so we reject Ho:= 3034
- We conclude the

5
3- Conduct a frequency distribution for monthly income rate by using cut point 8?

Statistics

‫اجمالي الدخل الشهري لألسرة بالشيكل‬

‫( االسرائيلي‬Binned)

N Valid 4308

Missing 5

Mean 2.24

‫( اجمالي الدخل الشهري لألسرة بالشيكل االسرائيلي‬Binned)

Cumulative
Frequency Percent Valid Percent Percent
Valid <= 25.00 1 .0 .0 .0
25.01 - 5727.00 3461 80.2 80.3 80.4
5727.01 - 11429.00 723 16.8 16.8 97.1
11429.01 - 17131.00 82 1.9 1.9 99.0
17131.01 - 22833.00 22 .5 .5 99.6
22833.01 - 28535.00 11 .3 .3 99.8
28535.01 - 34237.00 3 .1 .1 99.9
34237.01+ 5 .1 .1 100.0
Total 4308 99.9 100.0
Missing System 5 .1
Total 4313 100.0

Conclusion: the mean of monthly income doesn't equal 3034 (median) and this mean that there are extremes
values between lowest and highest income monthly rate.

4- What is the average total consumption and the average of expenditure for the Palestinian households
of population?
Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

‫االستهالك الشهري بالشيكل االسرائيلي‬ 4308 383.00 71329.89 4966.6995 3919.87165

Valid N (listwise) 4308
Average total consumption = 4966

Descriptive Statistics

N Mean

‫االنفاق الشهري بالشيكل االسرائيلي‬ 4308 4729.6299

6
Valid N (listwise) 4308

5- What is the association between total monthly income rates and total consumption for the Palestinian
population households?
Model Summary

Adjusted R
Model R R Square Square Std. Error of the Estimate
a
1 .637 .405 .405 3022.95651

a. Predictors: (Constant), ‫اجمالي الدخل الشهري بالشيكل االسرائيلي‬

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 2.683E10 1 2.683E10 2935.937 .000a

Residual 3.935E10 4306 9138266.061

Total 6.618E10 4307

a. Predictors: (Constant), ‫اجمالي الدخل الشهري بالشيكل االسرائيلي‬

b. Dependent Variable: ‫االستهالك الشهري بالشيكل االسرائيلي‬
a. What do the correlation coefficients tell us?
r= 0.637 which mean There is direct strong linear relationship between total monthly income and total
expenditure.

b. What is r square for the Pearson correlation? What does it mean?

2
R = 0.405

0.405 of the variation in the total consumption can be explained by total monthly income .

C. Is correlation significance?

Yes, the correlation is fit because sig. < 0.001 which less than alpha 0.05

6- What is the association between total monthly income and total expenditure for the Palestinian
sample population households?

7
 Correlations

‫االنفاق الشهري بالشيكل‬ ‫اجمالي الدخل الشهري لألسرة بالشيكل‬

‫االسرائيلي‬ ‫االسرائيلي‬

Pearson Correlation ‫االنفاق الشهري بالشيكل االسرائيلي‬ 1.000 .636

‫اجمالي الدخل الشهري لألسرة بالشيكل االسرائيلي‬ .636 1.000

Sig. (1-tailed) ‫االنفاق الشهري بالشيكل االسرائيلي‬ . .000
‫اجمالي الدخل الشهري لألسرة بالشيكل االسرائيلي‬ .000 .
N ‫االنفاق الشهري بالشيكل االسرائيلي‬ 4308 4308

‫اجمالي الدخل الشهري لألسرة بالشيكل االسرائيلي‬ 4308 4308

Model Summary

Change Statistics

Adjusted R Std. Error of R Square Sig. F

Model R R Square Square the Estimate Change F Change df1 df2 Change

1 .636a .405 .405 3219.98237 .405 2927.576 1 4306 .000

a. Predictors: (Constant), ‫اجمالي الدخل الشهري لألسرة بالشيكل االسرائيلي‬

a. What do the correlation coefficients tell us?

R= 0.637which mean There is direct strong linear relationship between total monthly income and total
consumption.

b. What is r square for the Pearson correlation? What does it mean?

2
R = 0.405

40.5% of the variation in the total expenditure can be explained by total monthly income.

C. Is correlation significance?

Yes, the correlation is fit because sig. < 0.001 which less than alpha 0.05

7- Is there association between genders in careers occupation?

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
* ‫المهنة الرئيسية‬ 6308 26.2% 19144 73.8% 25947 100.0%
‫الجنس‬

‫ المهنة الرئيسية * الجنس‬Crosstabulation

8
 ‫الجنس‬
‫ذكر‬ ‫انثى‬ Total
‫المهنة الرئيسية‬ ‫المشرعون وموظفو اإلدارة العليا‬ Count 212 30 242
Expected Count 188.2 53.8 242.0
‫الفنيون والمتخصصون والمساعدون والكتبة‬ Count 851 547 1398
Expected Count 1087.3 310.7 1398.0
‫عمال الخدمات والباعة في األسواق‬ Count 956 158 1114
Expected Count 866.4 247.6 1114.0
‫العمال المهرة في الزراعة والصيد‬ Count 431 493 924
Expected Count 718.6 205.4 924.0
‫العاملون في الحرف وما إليها من المهن‬ Count 974 155 1129
Expected Count 878.1 250.9 1129.0
‫مشغلو اآلالت ومجمعوها‬ Count 399 9 408
Expected Count 317.3 90.7 408.0
‫المهن األولية‬ Count 1468 120 1588
Expected Count 1235.1 352.9 1588.0
Total Count 5291 1512 6803
Expected Count 5291.0 1512.0 6803.0

Chi-Square Tests
Asymp. Sig. (2-
Value Df sided)
Pearson Chi-Square 1143.669a 6 .000
Likelihood Ratio 1128.315 6 .000
Linear-by-Linear 368.520 1 .000
Association
N of Valid Cases 6803
a. 0 cells (.0%) have expected count less than 5. The minimum expected
count is 53.79.

- State the hypotheses

H0: there is no difference between male and female in main occupation
H1: there is a difference between male and female in main occupation.

- The test statistic follows the chi-square distribution, designated as χ2

χ2= 1143.669
- Reject H0 if p value < alpha
- P - Value< 0.001 which less than alpha, so we reject Ho
9
- There is a difference between male and female in occupation of careers.

10
Part two:
1) According to angels law the best standard of living is less than 30 % of the portion of food
consumption from the total consumption , test if Palestinian families have the best standard of living
or not ?
One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

‫مستوى المعيشة‬ 4308 .3851 .11292 .00172

One-Sample Test

Test Value = .3

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

‫مستوى المعيشة‬ 49.484 4307 .000 .08513 .0818 .0885

- H0: π ≥ 30% H1: π < 30%

- Test Statistic Value: t = 49.484
- P-value < 0.001
- Decision: Reject H0 if P-value < alpha
- 0.001< 0.05 so we reject Ho :π ≥ 30%
- Conclusion: Palestinian families have the best standard of living.

2) Is there a difference between the mean of total monthly income for those who owning a villa, and the
mean of total monthly income for those for owning a house among the households sample population?

Group Statistics

Std.
‫نوعالمسكنالذيتقيمبهاألسرة‬ N Mean Deviation Std. Error Mean

‫اجماليالدخاللشهريلألسرةبالشيكالالسرائيل‬ ‫فيال‬
38 6081.9737 4763.43602 772.73136
‫ي‬
‫دار‬
2445 3894.2113 3618.57436 73.18095

Independent Samples Test

Levene's Test for

Equality of Variances t-test for Equality of Means

Sig. (2-
F Sig. T df tailed)

11
‫ اجماليالدخاللشهريلألسرةبالشيكالالسرائيلي‬Equal variances assumed 5.475 .019 3.678 2481 .000

Equal variances not assumed 2.819 37.667 .008

- HO:𝜇v = 𝜇h H1: 𝜇v ≠ 𝜇h
- Significance level = 0.05
- Notice that P-value ( Levene’s test ) = 0.019< 0.05, so we conclude 𝝈v ≠ 𝝈h.
- Test statistic value = t = 2.819
- P-value = 0.008< 0.05.
- Decision: reject 𝐻0: 𝜇v = 𝜇h
- Conclusion: the mean of monthly income who owned villa differ from the mean monthly income
who owned house.

3) Is there a difference in the mean of total monthly income before and after receiving support aid for
population households?

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair ‫اجماليالدخاللشهريلألسرةبالشيكالالسرائيل‬
2687.5096 1546 2620.29624 66.64164
1 ‫ي‬

‫اجماليالدخاللشهريلألسرةبالشيكالالسرائيل‬
1952.1830 1546 3285.30070 83.55460
‫ي قبل المساعدات‬

Paired Samples Correlations

N Correlation Sig.

Pair ‫اجماليالدخاللشهريلألسرةبالشيكالالسرائيل‬
1546 .671 .000
1 ‫ي&اجماليالدخاللشهريقباللمساعدات‬

Paired Samples Test

Paired Differences

95% Confidence

Std. Interval of the

Deviatio Std. Error Difference Sig. (2-

Mean n Mean Lower Upper t df tailed)

Pair ‫اجماليالدخاللشهريلألسرةبالشيكالالس‬
735.326 2471.31 612.04
1 - ‫رائيلي‬ 62.85268 858.61222 11.699 1545 .000
65 743 108
‫اجماليالدخاللشهريقباللمساعدات‬
- 𝐻0: 𝜇𝐴= 𝜇𝐵 𝐻1: 𝜇𝐴≠𝜇𝐵
- 0.05 significance level
- Test Statistic Value: t = 11.699
12
 - P-value < 0.001
- Decision: Reject H0: 𝜇𝐴 =𝜇𝐵
- Conclusion: There is difference in the mean of monthly income before and after receiving support
aid.
4) What is the correlation between total monthly income for the Palestinian population households and
aids?
Correlations

‫قيمةالمساعدةخالاللشهر اجماليالدخاللشهريلألسر‬
‫ةبالشيكالالسرائيلي‬ ‫بالشيكالالسرائيلي‬

‫ اجماليالدخاللشهريلألسرةبالشيك‬Pearson Correlation 1 .168**

‫الالسرائيلي‬ Sig. (2-tailed) .000

N 4308 1546
‫ قيمةالمساعدةخالاللشهربالشيكال‬Pearson Correlation .168** 1
‫السرائيلي‬ Sig. (2-tailed) .000

N 1546 1546

**. Correlation is significant at the 0.01 level (2-tailed).

a. What do the correlation coefficients tell us?

r= .168 which mean There is direct weak linear relationship between total monthly income and aid.

b. What is r square for the Pearson correlation? What does it mean?

2
R = 0.028

0.028 of the variation in the aid can be explained by total monthly income.

C. Is correlation significance?

Yes, the correlation is fit because sig. < 0.001 which less than alpha 0.05

13
5) Can we conclude that there is a difference between possessions of house in terms of monthly
income?

One way ANOVA: monthly income dependent variable, possession of house ( ) independent variable.

14
- 𝑯𝟎: 𝝁1 = 𝝁2 = 𝝁3= 𝝁 4 = 𝝁5 , 𝑯𝟏:𝑨𝒕 𝒍𝒆𝒂𝒔𝒕 𝒕𝒘𝒐 𝒎𝒆𝒂𝒏𝒔 are not the same.
- P-value ( Levene’s test ) = 0.155 which is larger than alpha 0.05, so we conclude 𝝈1= 𝝈2 = 𝝈 3=
𝝈 4= 𝝈 5
- Test Statistics F = 2.898
- P-Value = o.021 less than alpha 0.05
- Decision: reject 𝑯𝟎: 𝝁1 = 𝝁2 = 𝝁3= 𝝁 4 = 𝝁5
- Conclusion: there is a difference in the mean of monthly income between at least two terms of
possession a house

15
6) For the problem of poverty in households and low income, Draw fish bones diagram
(identifying the problem and the major categories of causes of the problem)

16
Part three:
1) What is the association between total monthly income and receiving healthcare services for sample
families? Compute Pearson correlation

We will use correlations test on SPSS to test the association between the two variables. We use it to compute
Pearson correlation for total monthly income and receiving healthcare services for sample families:

Pearson correlation of income rate and receiving healthcare services rate for sample families is r= 0.010

a. What does the correlation coefficient tell us?

r= 0.010 it means that there is a direct weak linear relationship between monthly income rate and receiving
healthcare services rate for sample families.

b. What is the square for the Pearson correlation? What does it mean?
2
R= 0.010 r =(0.010 x 0.010) = 0.0001

Which means that % 0.01 of variation in total monthly income rate can be explained by receiving
healthcare services rate for sample families.

17
 c. Is correlation significance?

Correlation is significance if p-value≤ ∝

H0: ρ=0
H1: ρ ≠ 0
Reject H0 if p- value ¿ ∝
Assume ∝ (Sig.) = 0.05
p-value (two tailed) = 0.522
p-value (two tailed) 0.522 ¿ ∝ 0.05, thus we reject H0 and conclude that correlation of the population is
not significance.

d. Reflect the correlation using scattered plot diagram, and what does it mean.

Y axes (independent variable) : monthly income rate

X axes (dependent variable): receiving health services rate

The scattered plot diagram as it is shown means:

Low correlation, with very little change in one variable compared with the other variable change.

Report/ Conclusion:
18
Healthcare expenditures have some weak relation to monthly income rate. But as it seems that no matter what the income
rate was, health care has a priority for sample households. These also show high awareness for health issues among
sample households.

2) What are the correlations among all of the variables: monthly income rate, healthcare expenditure
rate, clothes & shoe expenditures rate, residency expenditures rate, entertainment expenditures
rate, and private car owning expenditures, using Pearson correlations matrixes? .

The suitable test on SPSS for this question is “Correlate” test

In general:

- The correlation between the two variables is significant when Pearson correlation value has **beside it
which indicates that the correlation is strong
- When Pearson correlation value has *beside it
- When sig. (p- value) is smaller
- When t value is bigger it means that the correlation is stronger
- When the r square value is near 1.00

The interested user of this data should focus on the most significant variables that have effect on the study.
19
 correlation between monthly income rate and monthly clothes expenditures:

H0: Ƥ=0 (correlation equal 0)

H1: Ƥ ≠ 0 (correlation does not equal 0)

Reject H0 if p-value (sig.) ≤ ∝

Assuming ∝=0.05

By looking at its p-value (2-tailed) 0.001 ¿ ∝0.05 I will reject the null hypotheses, and conclude that the
correlation is significant, and the correlation is positive ( greater than zero ) linear, direct and weak = 0.066.

Report:

There is a weak correlation between monthly income and clothes & shoes expenditures. So it seems purchasing
clothes and high quality life matters to sample households no matter what the income rate was.

 correlation between total monthly income and monthly housing expenditure :

H0: Ƥ=0 (correlation equal 0)

H1: Ƥ ≠ 0 (correlation does not equal 0)

Reject H0 if p-value (sig.) ≤ ∝

Assuming ∝=0.05

By looking at its p-value (2-tailed) 0.001 ¿ ∝0.05 I will reject the null hypotheses, and conclude that the
correlation is significant, and the Pearson correlation is positive (greater than zero ) , direct , linear and weak =
0.153

Report:

Since correlation between monthly income and monthly housing expenditure rate is positive but weak, it seems
that housing matters for sample households and is a priority. So they spend on housing even if income rate was
low… housing expenditures not much related to monthly income rate.

 correlation between total monthly income and owning a private car:

20
H0: Ƥ=0 (correlation equal 0)

H1: Ƥ ≠ 0 (correlation does not equal 0)

Reject H0 if p-value (sig.) ≤ ∝

Assuming ∝=0.05

By looking at its p-value 0.001 (2- tailed)¿ ∝0.05 I will reject the null hypotheses, and conclude that the
correlation is significant , and the Pearson correlation is negative( smaller than zero ) -0.094 .. (Negative
correlation is a relationship between two variables in which one variable increase as the other decreases, and
vice versa).
Report:
The relation between monthly income rate and owning a private car is weak diverse relation. Whenever the
monthly income increases the interest in having a private car decreases, vice versa. We can conclude that
whenever the income rate increases and household satisfies its need for a private car and it becomes no more a
priority. While when income rate decrease the need for owning a car stays high in priority.

 correlation between owning a private car and participating in entertainment activities :

H0: Ƥ=0 (correlation equal 0)

H1: Ƥ ≠ 0 (correlation does not equal 0)

Reject H0 if p-value (sig.) ≤ ∝

Assuming ∝=0.05

By looking at its p-value 0.015 (2- tailed) ¿ ∝0.05 I will reject the null hypotheses, and conclude that the
correlation is significant, and the Pearson correlation is negative (smaller than zero ) -0.037. (Negative
correlation is a relationship between two variables in which one variable increase as the other decreases, and
vice versa).

21
 3) check the main causes (80%) of the monthly expenditure rate by checking the following factors
monthly expenditures rate : healthcare, clothes & shoe, Meat, Bread & Grains, Vegetables,
education, using “Pareto Chart”

We will use Excel not SPSS for this question

Report/ Conclusion:

 80% of monthly expenditures rate for sample families is caused by: healthcare, clothes & shoe, Meat,
Bread & Grains, Vegetables, and education.

 we find that “Meats expenditures” has the biggest mean among seven factors chosen for this
study( higher than 80%) and takes almost 20% of monthly expenditures followed by Clothes & shoes.

 So we can conclude that the meats prices may be high and expensive compared with other foods, to be
almost 20% of monthly expenditures. While the sample households as it seems seeks high quality life
since meats and clothes take most of the monthly expenditures.

 If these 20% were reduced from household’s monthly expenditures by government reduction of meats
prices and awareness rising among community 80% of monthly expenditures for households will be
reduced.

22
4) How well can we predict monthly expenditure rate from a combination of five variables? Health
services monthly expenditure rate, entertainment activities monthly expenditure rate, clothes and shoes
monthly expenditures rate, owning a private car expenditure rate, gross monthly income rate. Which of
these five variables contribute significantly to the multiple regressions?

The suitable test on SPSS for this question is Linear Regression test, since we will use the independent five
variables to estimate the dependent variable monthly expenditure rate.

First: we check “Anova” table to see if there is a good linear fit or not between the variables.

ANOVAa

Model Sum of Squares df Mean Square F Sig.

54042969235.9 10808593847.1
Regression 5 2218.780 .000b
22 84

20956819328.8
1 Residual 4302 4871413.140
38

74999788564.7
Total 4307
60

a. Dependent Variable: ‫االنفاقالشهريبالشيكالالسرائيلي‬

b. Predictors: (Constant), ,‫ النشاطاتالترفيهية‬,‫ الرعايةالطبية‬,‫اجماليالدخاللشهريلألسرةبالشيكالالسرائيلي‬

‫ المالبسواألحذية‬,‫توفرسيارةخاصة‬

If Sig. ¿ ∝ , then it would indicate that there is a good linear fit

Assuming that ∝=0.05

Sig. in Anova table = ¿0.001

0.001¿ ∝ 0.05

We conclude that there is a good linear fit

23
Second: we check the “Model Summary” table.

Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .849a .721 .720 2207.12780

a. Predictors: (Constant), ‫اجمالي الدخل الشهري بالشيكل االسرائيلي‬

‫ المالبسواألحذية‬,‫ توفرسيارةخاصة‬,‫ النشاطاتالترفيهية‬,‫الرعايةالطبية‬

R= 0.849 R2= 0.721

2
R 0.721 means that about 72.1% of the variation of monthly expenditure can be predicted by the five above
mentioned variables. While the remaining 27.9% variation remain unexplained.

Third: we check the “Coefficient “table to know which of the five variables are the most important in
predicting the variation in the monthly expenditures rate. Whereas when sig. value decreases it indicates that the
variable is more important. Or in other words also whenever t value increases, it indicated that the variable is
more important.

Coefficientsa

Model Unstandardized Coefficients Standardized T Sig.

Coefficients

B Std. Error Beta

1 (Constant) 3804.915 184.495 20.623 .000

‫النشاطاتالترفيهية‬ 1.359 .052 .224 25.971 .000

‫توفرسيارةخاصة‬ -1288.117 90.449 -.122 -14.241 .000

‫الرعايةالطبية‬ 1.065 .029 .292 36.125 .000

‫المالبسواألحذية‬ 2.773 .071 .352 38.813 .000

24
 ‫اجماليالدخاللشهريلألسرةبالشيكالالس‬
.531 .011 .442 49.558 .000
‫رائيلي‬

a. Dependent Variable: ‫االنفاقالشهريبالشيكالالسرائيلي‬

Since all sig. values in the table are with the same value 0.00 (less than 0.001) , we will use the t values in the
assignment. Whenever t value is bigger, the relation is stronger.

Total monthly income has the greatest t value 0.442, thus we conclude that it is the most important variable in
predicting the monthly expenditures rate, followed by clothes and shoes monthly expenditures rate t value =
0.352, then healthcare monthly expenditure rate t value =0.292, followed by entertainment monthly
expenditures rate t value = 0.224.

While owning a private car with t value -0.122 is the least important since it has the smallest t value. And since
it is negative, it means the relation is diverse, whenever owning a private car increases the monthly expenditure
rate decrease, and vice versa.

Report:

Since the most important variable in predicting Monthly expenditure rate for households after monthly income
rate is clothes, then healthcare, followed by entertainment, we can conclude that high quality life values for
sample households. But all mainly is related to monthly income rate which has the biggest value among all.

While the diverse relation between owning a car an monthly income rate, shows that when expenditure for
owning a private care increases the monthly expenditures rate decreases as it seems it reduces transportation and
travel expenses for sample households.

4) Is there a combination of two or more of the following 7 independent variables that predict
monthly expenditure rate better than anyone alone: Healthcare, Education, Cigarettes, Breads &
Grains, Meats, vegetables, Clothes & Shoes.
Which method you need to use and why?

The suitable test for this question is “stepwise multiple regression” since it excludes the independent variable
with less importance.

25
First: we check the “Variables entered/ removed” table. Any variable entered but not found in the table means
that it was not significant. And since all five variables we entered appear in the table it means that they are all
significant.

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

Stepwise
(Criteria:
Probability-of-F-
1 ‫المالبس واألحذية‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).
Stepwise
(Criteria:
Probability-of-F-
2 ‫اللحوم والدواجن‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).
Stepwise
(Criteria:
Probability-of-F-
3 ‫الرعاية الطبية‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).
Stepwise
(Criteria:
Probability-of-F-
4 ‫الخبز والحبوب‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).

26
 Stepwise
(Criteria:
Probability-of-F-
5 ‫التعليم‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).
Stepwise
(Criteria:
Probability-of-F-
6 ‫التبغ والسجائر‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).
Stepwise
(Criteria:
Probability-of-F-
7 ‫الخضراوات‬ . to-enter <= .050,
Probability-of-F-
to-remove
>= .100).

a. Dependent Variable: ‫االنفاق الشهري بالشيكل االسرائيلي‬

Second: we check the “Model summery” table. The row with the biggest R2is row number 7 which value is
0.696.

27
The most predictors accordingly are: Clothes & shoes, Meats, heath care services, Breads & Grains, education,
Cigarettes, Vegetables. As it is shown in point 7. bellow the same table (named g.). Which are all the variables
we entered.

Third: we check the “Anova” table to check if the variables are really significant by checking the sig. value.

If sig.≤ ∝then it would be significant.

Assuming that ∝= 0.05

We check row number 7 for the 7 variables where sig.= less than 0.001

0.001¿ ∝ 0.05 thus we conclude that the seven variables are significant.

ANOVAa

Model Sum of Squares df Mean Square F Sig.

26633193319.7 26633193319.7
Regression 1 2371.110 .000b
75 75

48366595244.9
1 Residual 4306 11232372.328
85

74999788564.7
Total 4307
60
28
 35359876138.9 17679938069.4
Regression 2 1920.088 .000c
47 74
39639912425.8
2 Residual 4305 9207877.451
13
74999788564.7
Total 4307
60
42514295961.4 14171431987.1
Regression 3 1877.572 .000d
98 66
32485492603.2
3 Residual 4304 7547744.564
62
74999788564.7
Total 4307
60
46722705143.8 11680676285.9
Regression 4 1777.480 .000e
47 62
28277083420.9
4 Residual 4303 6571481.158
13
74999788564.7
Total 4307
60
49500312308.5 9900062461.71
Regression 5 1670.233 .000f
63 3
25499476256.1
5 Residual 4302 5927353.848
98
74999788564.7
Total 4307
60
51936433953.5 8656072325.59
Regression 6 1614.239 .000g
58 3
23063354611.2
6 Residual 4301 5362323.788
02
74999788564.7
Total 4307
60
52181919968.9 7454559995.56
Regression 7 1404.803 .000h
28 1

22817868595.8
7 Residual 4300 5306481.069
32

74999788564.7
Total 4307
60

a. Dependent Variable: ‫االنفاق الشهري بالشيكل االسرائيلي‬

b. Predictors: (Constant), ‫المالبس واألحذية‬
c. Predictors: (Constant), ‫ اللحوم والدواجن‬,‫المالبس واألحذية‬
d. Predictors: (Constant), ‫ الرعاية الطبية‬,‫ اللحوم والدواجن‬,‫المالبس واألحذية‬
e. Predictors: (Constant), ‫ الخبز والحبوب‬,‫ الرعاية الطبية‬,‫ اللحوم والدواجن‬,‫المالبس واألحذية‬
29
f. Predictors: (Constant), ‫ التعليم‬,‫ الخبز والحبوب‬,‫ الرعاية الطبية‬,‫ اللحوم والدواجن‬,‫المالبس واألحذية‬
g. Predictors: (Constant), ‫ التبغ والسجائر‬,‫ التعليم‬,‫ الخبز والحبوب‬,‫ الرعاية الطبية‬,‫ اللحوم والدواجن‬,‫المالبس واألحذية‬
h. Predictors: (Constant), ,‫ التبغ والسجائر‬,‫ التعليم‬,‫ الخبز والحبوب‬,‫ الرعاية الطبية‬,‫ اللحوم والدواجن‬,‫المالبس واألحذية‬
‫الخضراوات‬

Report/ Conclusion:
Monthly expenditure rate for households can’t be predicted by one or two variables only. All selected seven
variables for this study in combination assist in predicting the monthly expenditure rate and has a great
importance for the study, and none of them can be excluded.

Dependent variable (a) represents the estimated monthly expenditure rate when it is zero 0.
Predictors (constant variables b,c,d,e,f,g,h) healthcare, education, cigarettes, breads & grains, vegetables, meats,
clothes & shoes , values in combination the average change in monthly expenditure rate for households.

Related equation for predicting monthly expenditures rate for household accordingly is:

⏞y =a+ b ( x )+ c ( x ) +d ( x )+ e ( x )+ f ( x )+ g ( x ) +h ( x)

---------------------------------------END---------------------------------------

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